Ministry: Drop in new apartment prices
Prices for new apartments in second quarter of 2013 were 10.5% lower compared to first quarter, report says. Prices drop in Tel Aviv, rise in Haifa as Israelis buy cheaper, smaller apartments
The Construction and Housing Ministry
released a review of apartment prices in Israel for
the second quarter of 2013 (April to June) on Wednesday. Data from the review showed that prices registered in the second quarter reached the same level of those registered in mid 2012, after the steep rise in prices in the first quarter of 2013.
The Housing Ministry said that this was due to Israelis buying smaller and cheaper apartments, and because the market was still waiting to see the results of the policies of the new government. "It's possible that the real estate market believes in the 33rd government, or at least is giving it a chance to prove itself, in light of different steps planned in the real estate field," the review said.
Housing Market
Avital Lahav
First two months of 2013 record decline in home purchases, construction of apartments for rent and personal use compared to 2012. Drop in demands felt mostly in northern, Tel Aviv and southern districts
According to the ministry's report, the real prices in the second quarter were 10.5% lower than prices in the first quarter, and were similar to prices registered in the second quarter of 2012. Also, a real drop of 1.5% was noted in the prices of second-hand apartments between the first and second quarters.
The office said in the second quarter there was a preference for smaller and cheaper apartments, which was the cause of the price drop; in addition, more apartments were bought in the periphery and the market had more first-time buyers, as opposed to investors.
These preferences were also expressed in the price gaps between various cities. While in Tel Aviv there was a 9.7% drop in new prices compared with the first quarter of 2013, in Haifa and in Modiin, prices rose 26.9% and 15%, respectively.
